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Afranga Analysis

Rank #54
Interview
Short-Term Personal Loans
Resale Marketplace Lending
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Last updated in June 2022.

What is Afranga?

Afranga is a relatively new resale marketplace platform launched in early 2021. It focuses on personal lending in Bulgaria. It has funded €22.78m worth of loans to date - see Afranga statistics for more historical performance insights.

Key Takeaways

  • Owned and run by a well-established, profitable financial firm
  • Payday and medium-term instalment loans secured with a buyback guarantee
  • High advertised returns (up to 18%); no loan performance statistics published

Who is Behind Afranga?

Afranga is owned and run by StikCredit - a Bulgarian consumer finance company which has operated since 2013. At Afranga, investors re-purchase loans originated by StikCredit.

In 2020, the company raised €160,000 via an equity crowdfunding round on Seedrs. It has retained stable profits over the years - according to unaudited financial statements, StikCredit reached a net profit of BGN 5.1m in 2021 (approx. €2.6m), up from BGN 4.6m (roughly €2.3m).

Afranga's Investment Product

Afranga offers two types of personal loans:

  • Payday loans of €50-€400 that last from 5 to 30 days and involve a single repayment at maturity, and
  • Instalment loans, granted for between €100 and €2,500 and last 3 to 24 months. They are repaid at equal monthly instalments.

All loans are covered with a 60-day buyback guarantee.

Afranga doesn’t offer an auto-invest feature or early exit options.

How Much Can You Earn?

Afranga advertises annual returns of up to 18%. However, no loan performance statistics are available. According to Afranga’s COO, investors can expect real returns of 16.8% per year, which is the interest rate on most loans.

Investors don’t incur any fees, and the borrower fee structure is undisclosed.

Other Considerations

Afranga is a relatively new platform. In an interview with P2PMarketData, Afranga COO – Yonko Chuklev, tells us about their ambitions for the future:

We have bold plans to grow Afranga into becoming one of the leading European P2P marketplaces by adding a number of selected loan originating companies and developing a diversified portfolio of loan products. I would say we consider as competition large established platforms operating in the personal loan asset class with assets under management of EUR 50+ million.